EQT closes debut real estate fund

By Paul Norman - Monday, June 19, 2017 13:25

EQT has closed its first real estate fund, EQT Real Estate I, with total commitments of €420m.

The fund will invest in "value-add real estate assets with a focus on repositioning high-yielding properties, predominantly in the office sector, in gateway cities in western Europe".

Around 35% of the total commitments have already been invested in four assets across the fund’s core geographies:

Rue Lauriston in central Paris, an office refurbishment project

Smart Parc in western Paris, a refurbishment project of two office buildings

Technologiepark Köln in Cologne, a portfolio of seven income-producing office assets to be repositioned

Täby Terass in the Stockholm area, a residential scheme of studio apartments

Edouard Fernandez, Partner at EQT Partners, Co-Head of EQT Real Estate and Investment Advisor to the fund, said: “The European real estate segment has long been dominated by North American private equity firms. With this fund, the market gets a new and exciting pan-European challenger that will be able to take advantage of the EQT signature combination of global reach and local people on the ground.”

Robert Rackind, Partner at EQT Partners, Co-Head of EQT Real Estate and Investment Advisor to the fund, added: “The market outlook is very promising. There is a continued supply-demand imbalance combined with rental growth in gateway cities across Europe, and we see a big “hands-on” value creation potential.”

Lennart Blecher, Deputy Managing Partner at EQT, Head of EQT Real Assets and Investment Advisor to the fund, said: “EQT Real Estate is a natural next step in the EQT Real Assets investment strategy. The responsible, sustainable development approach has always been a clear differentiator for EQT, and it’s going to be exciting to see the team apply this mindset also to the property sector.”

The fund is backed by a global investor base, and in addition received backing from Investor AB, EQT Partners and its affiliates.

Jussi Saarinen, Partner at EQT Partners and Head of Investor Relations, said: “This is yet another important milestone for EQT, being an integrated alternative investments firm with multiple investment strategies. The new fund has attracted great interest among investors, once again reflecting the trust in the EQT industrial approach and clear focus on value creation.”

The fundraising for the EQT Real Estate I has now closed.

As such, the foregoing should in no way be treated as any form of offer or solicitation to subscribe for or make any commitments for or in respect of any securities or other interests or to engage in any other transaction.

EQT is an alternative investment firm with approximately €36bn in raised capital across 23 funds. EQT funds have portfolio companies in Europe, Asia and the US with total sales of more than €19bn and approximately 110,000 employees. 

EQT Real Estate I will seek to make direct and indirect controlling investments in real estate assets, portfolios and operating companies that offer significant potential for value creation through repositioning, redevelopment, refurbishment and active management. The investments will typically range between €50m and €200m.

pnorman@costar.co.uk

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